1997 (11) TMI 306 - AT - Customs

Summary

Issues:
Interpretation of the term "Measuring Instruments" for the purpose of Notification No. 118/86.

Detailed Analysis:

The appeal before the Appellate Tribunal CEGAT, Madras pertained to the benefit of Notification No. 118/86 concerning Measuring Instruments. The goods in question were used for detecting defects in carcases, such as cracking and damage, which were not visible to the naked eye. The machine identified defects as the tyre rotated and displayed the number of defects on a Display Board.

The appellant's consultant argued that the term "Measuring Instruments" should be broadly interpreted. Even though the defects were not measured in specific units, the display of the number of defects indicated that the instrument measured defects. Reference was made to the Harmonized System of Nomenclature (HSN) under the heading "Measuring or Checking instruments, appliances and machines," specifically sub-para 27, which described instruments for detecting faults and defects in materials.

The consultant contended that since the appellant's goods fell under the category of "instruments" for detecting defects, they should be considered as covered under "measuring instruments." However, the department's representative argued that for an instrument to be classified as a "measuring instrument," the parameters to be measured should be known, and the units of measurement should be indicated. In this case, only defective portions were identified without any actual measurement being conducted.

After considering the arguments from both sides, the Tribunal examined the tariff heading 90.31, which covers "measuring or checking instruments, appliances and machines." The Tribunal noted that the machine in question only identified defects without measuring the degree or nature of the defects. Merely displaying the number of defects did not qualify the machine as a measuring instrument.

Consequently, the Tribunal upheld the lower authority's decision to deny the benefit of the notification available for measuring instruments, leading to the dismissal of the appeal.